Lockheed Martin has lowered the sales forecast for its rotor and mission systems division by $500 million due to slower than expected production ramp-ups at helicopter maker Sikorsky.
During its third-quarter earnings conference call, Lockheed Chief Financial Officer Evan Scott said the CH-53K heavy-lift helicopter program has provided most of the issues in terms of production delays.
“Our intention is to get production scaled and in good shape next year,” he said.
The company recently secured a $10.9 billion multi-year contract for the CH-53K, which should ensure workforce stability at Sikorsky’s Stratford headquarters until 2033. The company could build as many as 99 of the aircraft under the contract.
Rotary and mission systems revenues were comparable to the same quarter last year at $4.37 billion, driven in part by higher volumes on the Sikorsky Black Hawk program, but they missed analysts’ expectations of $4.6 billion.
Overall, Lockheed Martin reported third-quarter earnings of $1.62 billion, or $6.95 per share, about even from the year-ago period.
The aerospace and defense company posted revenue of $18.6 billion in the period, up 8.8% from a year earlier.
Despite the production delays, Lockheed overall increased its 2025 profit forecast to $22.15 to $22.35 per share, compared with its previous estimate of $21.70 to $22.00.